Former CEO of Chicago Charter School Network Charged With Misappropriating More Than $103,000

CHICAGO - A federal grand jury in Chicago today indicted the former Chief Executive Officer of a Chicago charter school network for allegedly misappropriating more than $103,000 in funds intended to support the non-profit's educational work.

TIMOTHY KING served as CEO of Urban Prep Academies, a not-for-profit corporation that operated three charter schools in Chicago. Urban Prep received educational and organizational funds from Chicago Public Schools that were originally derived from the federal government.

An indictment returned today in U.S. District Court in Chicago alleges that in 2021 and 2022, King embezzled $103,833.31 from Urban Prep to pay for his personal credit card charges. The indictment further alleges that after receiving a federal grand jury subpoena and learning of the criminal investigation in 2022, King obstructed justice by deleting online records of three purported cash donations he had made to Urban Prep.

The indictment charges King, 59, of Chicago, with two counts of federal program theft and one count of obstruction of justice. Arraignment in U.S. District Court in Chicago has not yet been scheduled.

The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, John F. Woolley, Special Agent-in-Charge of the U.S. Department of Education Office of Inspector General's Midwestern Regional Office, and Adam Jobes, Special Agent-in-Charge of IRS Criminal Investigation in Chicago. Valuable assistance was provided by the Chicago Public Schools, Office of Inspector General. The government is represented by Assistant U.S. Attorneys Prashant Kolluri and Sean Hennessy.

The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of federal program theft is punishable by up to ten years in federal prison, while the obstruction count is punishable by up to 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.